In response to the release of a Summary of Responses to the Green Paper Call for Evidence on Securing a Path towards Adequate Housing, members of Propertymark have voiced strong opposition to the proposed implementation of rent controls in Wales.

The summary, which encapsulated insights from 371 responses, addressed various aspects including rental rates, tenant-landlord dynamics, affordability issues, and potential steps the Senedd could take to improve housing adequacy.

The Welsh Government acknowledged the challenges many face in affording rent and emphasized the need for more accurate data on rental affordability in Wales. Propertymark has suggested the establishment of a Welsh housing survey similar to that of England to facilitate better data collection and provide more accurate statistics.

Reflecting on Scotland's experience, where rent controls led to a decline in the private rented sector, many respondents expressed concerns about replicating this model in Wales. According to Propertymark's recent research, 95% of surveyed agents in Wales believe that rent controls would diminish housing supply.

Propertymark has recommended that the Welsh Government prioritize actions to address the shortage of housing supply in order to improve housing adequacy. They propose enhancing collaborations between local authorities, property agents, and landlords, improving data collection efforts, and supporting landlords in housing vulnerable populations and in the process of decarbonizing properties.

Additionally, Propertymark suggests utilizing property portal websites to publish data on actual rents achieved at the time of letting, which would provide a more accurate reflection of local market conditions.

The Welsh Government is preparing a White Paper consultation on housing adequacy, fair rents, and affordability to be released in the summer. Propertymark expressed disappointment that the discussion of fair rents, potentially through rent controls, is included within the broader debate on adequate housing—a topic that enjoys widespread support across the housing sector.

Tim Thomas, policy and campaigns officer at Propertymark, stated: “We are disappointed the prospect of damaging rent controls has been included within the widely supported debate of enshrining adequate housing into law, which we support.

“Given the substantial damage that rent controls have had on the private rental sector in Scotland, it would be a mistake for Wales to follow suit.

“Instead, the Welsh Government should focus on reinforcing existing legislation, remove any barriers to build more adequate homes, and improving the way they collect their data.

“To this end, a far more equitable solution would be to stimulate the supply of affordable homes in the private rented sector, by adopting progressive property taxation.

“One option open to the Welsh Government, would be to reduce levels of Land Transaction Tax for landlords’ properties or an exemption of new long-term rental properties from the 4% LTT levy on additional homes.

“Propertymark will continue to work with the Welsh Government to try and find solutions on building more adequate homes and avoid rent controls.”